Discussion and possible action by the LCRA Board of Directors on a contract to provide water to a proposed new coal plant in Matagorda County will be postponed indefinitely. This decision comes after the company proposing the plant substantially changed the terms of the contract.
Attorneys representing the White Stallion Energy Center project requested changes to the proposed contract on Monday, Aug. 1.
The development prompts the cancellation of the special-called Aug. 10 meeting of the LCRA Board.
"The requested changes delivered to us on Monday would substantially change the earlier proposal," said LCRA General Manager Becky Motal. "Staff cannot recommend these changes to the Board."
The earlier proposed contract would have required LCRA to provide White Stallion 25,400 acre-feet of water a year. In return, White Stallion would have paid LCRA $55 million within one year of signing the contract. LCRA intended to use that money on pumping plant improvements, an off-channel reservoir in the lower basin and a study to determine how to best configure future water supply enhancements. In addition to paying the standard water use and reservation rates, the proposed contract would have required White Stallion to pay LCRA an additional $250,000 a year that LCRA would spend on water supply improvements.
The LCRA Board voted in June to delay action on the original proposal until the special-called meeting on Aug. 10.
The new proposal by White Stallion would give the company more time to pay the $55 million and significantly reduce the amount of water reservation fees White Stallion would have to initially pay. The new proposal included other changes, some unprecedented for an LCRA water contract.